A survey of 2,000 adults revealed that one in four have been persuaded to invest in stocks and shares by a friend during a pub chat.
Despite 75% asserting that the pub is the worst place for financial advice.
Some respondents even confessed to avoiding certain financial products (18%), applying for a credit card (17%) or placing a bet (14%) based on these informal recommendations.
However, a more prudent 41% declined their friends’ financial wisdom, with 26% preferring to conduct their own research and a mere 16% opting for professional advice.
“Everyone seems to have a friend who is always ready to share their ‘brilliant’ money-saving tip or investment ideas,” observed Helen McGinty, head of finance advice distribution at Skipton Building Society, which commissioned the study.
The survey also found that nearly one in five respondents were irritated by unsolicited advice on their spending habits, while three quarters deemed such unasked-for financial guidance ‘annoying’.
Helen further noted: “Some conversations are really worth having, but whilst it can be great to chat about finances informally with your friends, making decisions about your money is a big deal, so it’s always wise to do your own research and to seek advice from a qualified professional”.
A staggering 96% of respondents agree that it’s crucial to verify financial advice with a professional before implementing it. Six out of 10 do this to prevent financial losses, while another 58% aim to fully comprehend any potential risks involved.
However, 34% of those surveyed don’t believe they require professional financial advice, while one in 10 confessed they don’t even know where to begin when it comes to seeking financial counsel.
Helen commented: “There are a lot of misconceptions out there about what qualified financial advice is and what it actually involves, and we know this can stop people from seeking the help they need.
“We believe everyone, regardless of their background or financial situation, should have access to valuable advice to make informed choices and to enable you to make the most of your money.”
